Elon Musk Reveals Tesla Model 2 Is In Production! Design, Motor & Super Battery Change Everything! | HO

A $25,000 Tesla EV? That’s a nice number and the bank certainly can’t hurt us with this car, right?

Elon Musk has stated that the Model 2 will revolutionize manufacturing in Q1 2025 and the company is finalizing the last stages of production of this Model.

Sounds amazing—until you realize Tesla is cutting a few features to make it happen.

But don’t worry, we have to say that while its crossover design may not be groundbreaking, its performance and real-world experience are far better than what you’d expect at a $25,000 price point.

There will be two versions of this affordable car built at Giga Texas, and a 300-mile range is one of its most highly anticipated features.

So in today’s episode, we will address all and determine whether the Tesla Model 2 is truly an “affordable Tesla”—or just a stripped-down, feature-limited EV designed to boost Tesla’s profits. Welcome to Tesla Car World!

How powerful are the Tesla Model 2’s motors and batteries?

Most electric vehicle enthusiasts are skeptical about how Tesla can produce and sustain the Model 2 at a $25,000 price point. Previously, Elon Musk claimed that the Cybercab would cost under $30,000. Of course, the reason the robotaxi could be priced that low is due to its small battery pack, simplified design, and the absence of a steering wheel and pedals. But when it comes to the Model 2, how will Tesla cut costs?

Tesla has officially entered the final stages of production for its highly anticipated $25,000 electric vehicle—the Model 2. Elon Musk has promised that this budget-friendly EV will revolutionize car manufacturing and make electric vehicles more accessible than ever. Slated for release in the first quarter of 2025, the Model 2 is expected to be built at Tesla’s Giga Texas facility, with expansion plans for Giga Berlin and China in the future.

While the Model 2 brings excitement due to its affordability, Tesla has made strategic feature adjustments to achieve this price point. Many enthusiasts are now questioning whether it will be a genuinely affordable Tesla or just a stripped-down version of previous models designed to maximize the company’s profits. Let’s take a deep dive into what makes the Tesla Model 2 special and whether it truly delivers on its promise.

Performance & Battery Innovation

One of the biggest concerns surrounding the Model 2 is whether Tesla can sustain profitability while offering a high-performance EV at such a low cost. Historically, Elon Musk has made ambitious pricing claims, such as the Cybercab’s expected $30,000 price point, which was achieved by removing a steering wheel, pedals, and reducing battery size.

For the Model 2, Tesla is implementing multiple cost-cutting strategies without compromising essential performance. Firstly, the vehicle will not come with Full Self-Driving (FSD) by default, a feature currently sold separately for $10,000. By making FSD optional, Tesla significantly reduces the base price. Additionally, the Model 2 is expected to feature a smaller 53 kWh battery, offering an estimated range of over 300 miles. While smaller than the Model Y’s battery, it remains competitive in the affordable EV market.

Tesla’s battery advancements are also key to maintaining the Model 2’s affordability. The company is expected to use lithium iron phosphate (LFP) batteries, which offer benefits such as increased safety, a longer lifespan, and lower production costs. If Tesla can manufacture these LFP batteries domestically, the Model 2 could qualify for key government incentives, further reducing its final cost for consumers.

Interestingly, Tesla recently shared a rendered image of the Cybercab, showcasing a battery pack using 4680 cells. Many experts speculate that this advanced battery type may also be used in the Model 2. The 4680 cell technology is designed to lower production expenses while improving efficiency, making it a potential game-changer for Tesla’s low-cost EV strategy.

Motor & Powertrain Efficiency

Tesla has also focused on optimizing the Model 2’s drivetrain. Unlike higher-end models that feature dual motors, the Model 2 is expected to launch with a single motor to keep costs down. However, this doesn’t necessarily mean it will lack speed or efficiency. The rear-wheel-drive Tesla Model 3, for instance, accelerates from 0-60 mph in just 5.3 seconds, and the Model 2’s lighter weight and improved aerodynamics could deliver similar performance.

Another major development is Tesla’s transition to a 48-volt electrical system, replacing the traditional 12-volt setup. This switch allows for thinner, lighter wires, reducing the overall weight of the car while improving efficiency. By eliminating rare-earth materials from its motors, Tesla is also cutting production costs while ensuring sustainability.

Minimalist Design & Production EfficienciesAlthough Tesla has not officially unveiled the Model 2’s design, it is widely believed to be a compact crossover—essentially a smaller version of the Model Y. While it may not introduce groundbreaking aesthetics, Tesla’s design philosophy prioritizes efficiency over flashiness. The Model 2 will likely feature a minimalist interior, relying heavily on software-based controls instead of physical buttons and switches. Standard materials will be used for seats and trim to further reduce manufacturing costs.

Tesla is also implementing cost-saving production techniques to streamline manufacturing. The Model 2 is expected to benefit from Giga casting technology, which allows for large, single-piece castings instead of assembling multiple components. This approach significantly reduces production time and cost. Tesla’s Texas facility currently utilizes a 6,000-ton Giga Press for the Model Y and a 9,000-ton press for the Cybertruck, and similar technology will be used for the Model 2.

Why Giga Texas Is Key to Production

Initially, Tesla planned to manufacture the Model 2 in Mexico, but construction delays forced the company to pivot to Giga Texas. This move accelerates production, making a 2025 release possible rather than pushing it to 2026 or beyond. Tesla aims to produce up to 500,000 Model 2 units per year at this facility before expanding production globally.

By manufacturing in the U.S., Tesla also avoids tariffs and import restrictions that currently affect Chinese EV manufacturers. The U.S. government has imposed a 25% tariff on imported cars and an additional 10% tax on Chinese EV imports, making domestic production even more advantageous. These factors help Tesla maintain its competitive pricing without relying on government subsidies.

Is the Model 2 the Future of Affordable EVs?

The Tesla Model 2 is set to enter a highly competitive market, with many automakers planning to launch EVs under $25,000 by 2025-2026. However, Tesla’s strong brand recognition, advanced battery technology, and cost-efficient production techniques may give it a major edge.

While some compromises have been made—such as the exclusion of FSD by default and a minimalist design—these choices ensure affordability without sacrificing essential performance features. Tesla’s streamlined manufacturing process, combined with its commitment to reducing production costs, suggests that the Model 2 could be a breakthrough in making EVs accessible to a larger audience.

However, given Tesla’s history of production delays, skepticism remains. Although the company has officially confirmed a 2025 launch, past vehicle rollouts—such as the Cybertruck—have experienced significant delays. If Tesla manages to stay on track, the Model 2 could be a defining moment in the shift toward mass-market electric vehicles.

With its projected $25,000 price tag, 300-mile range, fast-charging capabilities, and improved efficiency, the Model 2 has the potential to reshape the automotive industry. Whether it delivers on its full promise remains to be seen, but one thing is certain: the future of affordable electric vehicles is closer than ever.